The Impact of Occupational Injury And Illness The Impact of - PowerPoint PPT Presentation

Commission on Commission on Health and Safety and Health and Safety and Workers’ Compensation Workers’ Compensation The Impact of Occupational Injury And Illness The Impact of Occupational Injury And Illness on Non- -occupational Disability Benefits occupational Disability Benefits on Non October 13, 2006 October 13, 2006 NASI Conference— —Washington, D.C. Washington, D.C. NASI Conference Frank Neuhauser Frank Neuhauser Anita Mathur Anita Mathur Survey Research Center/ Survey Research Center/ UC Data Archive and Technical Assistance UC Data Archive and Technical Assistance University of California, Berkeley University of California, Berkeley

Overview Overview • Background • Background • Data • Data • Adjustments • Adjustments • Results • Results • Implications • Implications • Future Work • Future Work

Background Background California workers’ compensation California workers’ compensation • • Paid for by employers employers Paid for by • • Average premiums have ranged from 3%- -6% (1999 6% (1999- -2004) 2004) Average premiums have ranged from 3% – Range is 0.4% to 60% across industry classes Range is 0.4% to 60% across industry classes – • • Includes medical, temporary and long- -term disability term disability Includes medical, temporary and long • • California-- --Temporary disability up to 730 days Temporary disability up to 730 days California California one of 5 states with near universal non- -occupational occupational California one of 5 states with near universal non disability system disability system • • Paid for by Paid for by employees employees • • California rate 1.1% of payroll, with maximum contribution California rate 1.1% of payroll, with maximum contribution • • Covers disability lasting 7 Covers disability lasting 7- -365 days 365 days • • No medical or long- -term disability benefits term disability benefits No medical or long

Background Background Policy concerns Policy concerns • Internalizing occupational injury costs to • Internalizing occupational injury costs to give employers and employees proper give employers and employees proper incentive for investments in prevention incentive for investments in prevention • Proper employee costs for SDI signals • Proper employee costs for SDI signals appropriate benefit breadth and level appropriate benefit breadth and level – Paid “Family Leave” Paid “Family Leave” – • Frequent litigation over correct • Frequent litigation over correct payor payor, , leads to substantial legal and admin costs leads to substantial legal and admin costs

Background Background • This is a truly unique set of research • This is a truly unique set of research – Only research SDI in any state Only research SDI in any state – – Only research comparing two, Only research comparing two, – separate short to medium term separate short to medium term disability systems disability systems

Data— —State Disability Insurance (SDI) State Disability Insurance (SDI) Data • We obtained a 20% sample of all claimants, • We obtained a 20% sample of all claimants, the “Single Client File” (SCF) for 1991- -2002 2002 the “Single Client File” (SCF) for 1991 • Many employers can opt out of SDI if they • Many employers can opt out of SDI if they are: are: – State government State government – – Large employers that elect self Large employers that elect self- - – insurance insurance – Self Self- -employed workers employed workers –

Data— —SDI SDI Data • From Employment Development Department • From Employment Development Department (EDD) “employer file” we obtained a specially (EDD) “employer file” we obtained a specially constructed data that constructed data that – Defined all workers that were eligible for SDI benefits by Defined all workers that were eligible for SDI benefits by – number of unique SSNs SSNs number of unique – By 2 By 2- -digit SIC digit SIC – – By contribution and wage By contribution and wage – • Allowed us to construct denominators for injury, • Allowed us to construct denominators for injury, illness, and total rates by 2- -digit industry digit industry illness, and total rates by 2 • Numerators: • Numerators: – Excluded several ICD Excluded several ICD- -9 codes 9 codes – (pregnancy) (pregnancy) – Defined each claim as injury or illness Defined each claim as injury or illness – based on ICD- -9 codes 9 codes based on ICD

DATA— —Bureau of Labor Statistics (BLS) for Bureau of Labor Statistics (BLS) for DATA California California • Survey of Occupational injuries and • Survey of Occupational injuries and Illnesses (SOII) for 2000- -2002 2002 Illnesses (SOII) for 2000 • Data are incidence/(100 FTEs) • Data are incidence/(100 FTEs) • Separately for injuries and illnesses • Separately for injuries and illnesses • By 2 • By 2- -digit industry codes digit industry codes • Differs from SDI data which are incidence • Differs from SDI data which are incidence relative to unique SSNs SSNs/year /year relative to unique

DATA- -Current Population Survey (CPS) Current Population Survey (CPS) DATA Basic Monthly File Basic Monthly File • Allows us to translate unique • Allows us to translate unique SSNs SSNs into into Full- -time equivalents (FTEs) time equivalents (FTEs) Full • Allows us to identify characteristics of • Allows us to identify characteristics of workers that might affect probability of workers that might affect probability of disability disability – Age, gender, race, ethnicity, etc. Age, gender, race, ethnicity, etc. –

Data— —National Health Interview Survey National Health Interview Survey Data • Injuries/Illnesses may be correlated with both • Injuries/Illnesses may be correlated with both industry and worker demographics for industry and worker demographics for example, example, – young workers have fewer non young workers have fewer non- - – occupational illnesses (but maybe more occupational illnesses (but maybe more non- -occupational injuries) occupational injuries) non – Female workers might have more illnesses, Female workers might have more illnesses, – but fewer injuries but fewer injuries – Construction has mostly younger, male Construction has mostly younger, male – workers workers

Data— —National Health Interview Survey National Health Interview Survey Data • Constructed estimates for a range of worker • Constructed estimates for a range of worker characteristics characteristics • Adjusted each California industry group to • Adjusted each California industry group to reflect injury/illness risk of workforce reflect injury/illness risk of workforce • After adjustment, each industry should have • After adjustment, each industry should have the same non- -occupational injury/illness rate occupational injury/illness rate the same non – Except Except, if occupational injury/illness rates , if occupational injury/illness rates – affect non- -occupational injury/illness rates occupational injury/illness rates affect non

Occupational and Non-Occupational Incidence Rates for Injuries by Industry, 2000-2001 14.0 12.0 Occupational (BLS) Rates 10.0 8.0 6.0 4.0 2.0 0.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Non-Occupational (SDI) Rates

Occupational and Non-Occupational Incidence Rates for Illnesses by Industry, 2000-2001 1.0 0.9 Occupational (BLS) Rates 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 0.0 2.0 4.0 6.0 8.0 10.0 Non-Occupational (SDI) Rates

Occupational and Non-Occupational Incidence Rates for Injuries and Illnesses by Industry, 2000-2002 14.0 12.0 Occupational (BLS) Rates 10.0 8.0 6.0 4.0 2.0 0.0 0.0 2.0 4.0 6.0 8.0 10.0 Non-Occupational (SDI) Rates

Correlations Between Correlations Between Occupational and Non- -Occupational Occupational Occupational and Non Incidence Rates Incidence Rates Injury Illness Injury or Injury Illness Injury or Illness Illness Pearson .374** .394** .268** Pearson .374** .394** .268** Correlation Correlation N 105 105 161 N 105 105 161 **Correlation is significant at the 0.01 level (2-tailed)

Average Incidence Rate All Industries Average Incidence Rate All Industries (incidence/100 FTE) (incidence/100 FTE) Injury Illness Injury or Injury Illness Injury or Rate Rate Illness Rate Rate Illness Rate Rate Non- -Occupational Occupational 0.84 3.04 4.08 Non 0.84 3.04 4.08 (SDI) (SDI) Occupational 2.95 0.20 3.20 Occupational 2.95 0.20 3.20 (BLS) (BLS)

Regressions Predicting Regressions Predicting Non- -Occupational Incidence Rates Occupational Incidence Rates Non from Occupational Incidence Rates from Occupational Incidence Rates Injury Injury Illness Illness Injury or Illness Injury or Illness Year 0.014 0.198 0.257 Year 0.014 0.198 0.257 (0.056) (0.056) (0.209) (0.209) (0.143) (0.143) BLS Rate BLS Rate 0.064** 0.064** 2.849** 2.849** 0.217** 0.217** (0.016) (0.647) (0.063) (0.016) (0.647) (0.063) **Significant at the .01 level of confidence